Montreal-Based Gildan Activewear Announces Historic Acquisition

In a landmark deal that promises to reshape the apparel industry, Montreal-based Gildan Activewear has announced its acquisition of HanesBrands Inc. for a staggering $4.4 billion. This strategic move not only values HanesBrands' equity at approximately $2.2 billion but also grants its shareholders a significant 19.9% stake in the newly combined entity.

Unprecedented Growth and Synergies Expected

Gildan's CEO, Glenn J. Chamandy, highlighted the transformative potential of the acquisition, stating, "Our revenues will double, and we will achieve a scale that clearly differentiates us." The company anticipates realizing at least $200 million in annual cost synergies within the next three years, marking a new era of efficiency and growth.

Approvals and Future Prospects

With unanimous approval from both companies' boards, the deal now awaits shareholder and regulatory nods. Slated for completion in late 2025 or early 2026, the transaction will maintain Gildan's headquarters in Montreal while ensuring a robust presence in Winston-Salem. Financing for this ambitious venture includes $2.3 billion secured through a bridge facility and term loans, underscoring the confidence in this merger's success.